Saturday, April 2, 2011

Infonetics: OTT Streaming Services Doubled Set-top Boxes Sales

Infonetics Research published a report covering the Set-Top Boxes and Subscribers market. While total sales showed a small decline in Q4 2010 (-1%), OTT Set-Top boxes ("standalone set-top boxes such as Apple TV, Roku Media Player, Boxee STB") market showed strong growth.
According to Teresa Mastrangelo (picture), Directing Analyst, Cable, Satellite, and IPTV Video - "In the fourth quarter of 2010, we witnessed the dramatic growth of over-the-top services, as service providers and equipment vendors hit the ‘sweet spot’ for pricing. However, these services continue to complement pay TV rather than replace it .. We also are seeing increasing demand for hybrid set-top boxes, which leverage the existing broadcast infrastructure, but utilize the broadband connection to incorporate OTT content and increase interactivity and on-demand services".

More OTT related findings:
  • OTT media server revenue jumped 90% in 2010 (as providers such as Netflix and Hulu launched low-cost streaming services toward the end of 3Q10) , and is forecast by Infonetics to grow to $1.16 billion in 2015
  • Netflix added more than 3 million subscribers in 4Q10—nearly twice as many as in the previous quarter, and 3 times as many as during the same period in 2009—now supporting a subscriber base that exceeds 20 million
  • Hulu introduced its paid service, Hulu Plus, last year at a similar price point; its subscriber base is expected to exceed 1 million in 2011
  • Amazon UK’s purchase of LOVEFiLM will likely drive increasing OTT media server demand in Europe
See "Netflix, Hulu drive big jump in over-the-top media server market; set-top box demand is up" - here.

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